Barstool Bump: How Much Would A $1,000 Penn National Investment Be Worth Today?

In January 2020, casino operator Penn National Gaming Inc PENN purchased a 36% stake in Barstool Sports. Here’s a look at how investors would have done if they invested in Penn National alongside the Barstool Sports purchase.

What Happened: Penn National acquired a 36% stake in Barstool Sports for a purchase price of $163 million. The purchase price valued Barstool Sports at $450 million.

Penn National Gaming will increase its ownership in Barstool Sports to 50% in three years with an additional investment of $62 million. Penn National is paying $225 million for 50% ownership in the popular sports brand.

Related Link: FanDuel Passed On Buying Barstool Sports Before Penn National, Portnoy Says

Investing Alongside Penn: Investing alongside Penn National since its Barstool Sports acquisition could have been beneficial to investors.

Shares of Penn National hit a high of $30.44 on Jan. 29, 2020, the day of the announcement. An investor could have purchased 33 shares for just over $1,000.

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Penn National shares have been on an upward trajectory for most of 2020, with the exception of the drop casino stocks saw during the peak of the COVID-19 pandemic.

Investors who purchased the 33 shares would have seen their value rise from $1,000 to $3,948.

What’s Next: Penn National reported fourth-quarter earnings last week and highlighted the growth of Barstool Sports and the Barstool Sportsbook betting app.

The Barstool Sportsbook was downloaded 72,000 times and took $300 million in bets in Pennsylvania with limited marketing.

Since the end of the fourth quarter, Penn launched the Barstool Sportsbook in Michigan. The app was downloaded by 48,000 new customers in Michigan and saw $27.5 million in betting handle in the first 10 days.

Penn expects to have the Barstool Sportsbook app live in 10 states by the end of 2021.

PENN Price Action: Shares of Penn National Gaming ended Monday's session down 5.96% at $121.23. Shares hit new 52-week highs last week.